Making positive changes in our lives often involves plans for physical well-being, such as eating better and exercising more, especially at the start of a new year.
However, it's equally crucial not to overlook our financial health. With almost a whole year ahead, now is an opportune moment to commit to financial well-being, encompassing aspects like improved budgeting, retirement savings, and future planning.
A recent study by the FINRA Investor Education Foundation revealed that 60% of Americans experience financial anxiety.
To gauge a more localized perspective, we conducted an informal survey among employees in Prudential's Individual Life Insurance business. The results were not unexpected; only 25% expressed confidence in their finances for the new year, with 34% emphasizing the importance of budgeting to enhance their financial situation in 2024.
The question often arises, "What does it mean to be financially well?" For me, it signifies the ability to comfortably meet financial obligations, manage monthly expenses without undue worry, and have funds set aside for unforeseen emergencies.
It also involves saving for retirement, ensuring protection for loved ones through life insurance and estate planning, and maintaining regular engagement with a financial professional to ensure sound financial planning.
Regardless of where you stand in your financial wellness journey, the onset of a new year is an ideal time to ensure you have a financial plan that instills confidence and offers peace of mind. Here are four tips to consider:
Take it one day at a time:
Achieving financial wellness starts with organizing and understanding day-to-day finances. Create a budget by tracking spending, making it easier to take larger steps like paying down debt or building an emergency fund.
Set financial goals:
Define your financial goals, whether related to retirement savings, homeownership, or your child's education. Establishing and progressing toward both short- and long-term financial goals is integral to overall financial well-being.
Protect against risk:
Safeguard yourself and your loved ones against significant financial setbacks. Whether through life insurance, health insurance, or retirement savings, having resources to navigate unexpected challenges is crucial for financial security.
Connect with a financial professional:
Seek guidance from a financial professional who can provide insights and strategies you may not have considered. They will assist you in crafting a realistic financial plan, contributing to a blueprint for a happy and healthy future.
Paraphrasing text from "Kiplinger" all rights reserved by the original author.
